OMCs are losing Rs 530 crore a day. 2 PSU refiners are on the other side

Brent crude oil rates were hovering above $ 105 per barrel on Monday with US President raising the prospects of further strikes on Iran.

Key points

• India imports almost 85%-90% of its total annual oil requirements from key producing countries, like Russia, Saudi Arabia, Kuwait and USA, amongst others.
• A year earlier, Singapore GRMs were pegged at $ 8.5 per barrel.
• Nevertheless, it has created avenues for super-normal refining profits for substantial refiners, like pure-play PSU refiners.
• Rising rates of oil products has created opportunities for Indian refiners amidst global refinery and product supply disruptions, inventory draw downs and outages throughout west Asian refining capacity.

On the one hand, rising international oil rates has led to rising under-recoveries for oil marketing businesses (OMCs) for every litre of petrol and diesel sold along with every domestic gas cylinder supplied to homes.

Nevertheless, it has created avenues for super-normal refining profits for substantial refiners, like pure-play PSU refiners. The $20.5 Surge: Why Singapore Margins Are Breaking Records.

This is additionally reflected in surging gross refining margins (GRMs) for refiners, with the key regional benchmark, Singapore GRMs averaging almost $ 20.5 per barrel right up to late in September 2026 quarter, according to brokerage house reports and international media.

Meanwhile, a year earlier, Singapore GRMs were pegged at $ 8.5 per barrel.

ICRA in its report dated 23 September, 2026 points out that Singapore gross refining margins (GRM) have remained above $10 per barrel since the start of the West Asia crisis, backed by refinery and product supply disruptions, inventory draw downs and outages throughout west Asian refining capacity.

For now, oMCs are losing Rs 530 crore a day. 2 PSU refiners are remains the part of the story worth watching, and further updates are likely as more details are confirmed.